>> That sounds like good news for me! The top of the MFJ 15% tax bracket for 2008 is $61K right? So, I can minimize our income to stay under that and any other needs cover by selling some long term positions and taking the capital gains. Is there any limit on the amount of capital gains I can take at 0%? <<

Yes -- generally, the long-term gains "taxed" at 0% will be limited to the amount of gains which would kick you into the 25% income tax bracket. Long-term capital gains above and beyond that amount would be taxed at 15%.

For example, if you would be $10,000 below the bottom of the 25% bracket *before* considering any long-term capital gains, in 2008 the first $10,000 of long-term gains are considered as being in the 15% marginal income tax bracket, resulting a 0% rate (or 5% in 2007). Capital gains above and beyond this level put your total income into the 25% bracket and would be taxed at the 15% rate.

I think I got that right, but I'll add the disclaimer that I'm not a CPA or a tax pro.